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Mortgage glossary
Principal
The amount borrowed or the unpaid loan balance, not including future interest. Part of a scheduled payment may reduce principal. Fees or other amounts may be handled separately under the loan documents.
In plain language
This term may appear in conversations, forms, or documents during the mortgage process. If something important changes in your situation, ask how it may affect your case before making a decision.
This explanation is general and educational. It is not personalized advice, a loan offer, or a promise of approval.